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Mari and Ned Want to Buy a Window-Cleaning Company, WhistleStop

Question 16

Multiple Choice

Mari and Ned want to buy a window-cleaning company, WhistleStop Ltd. The buyer, Tam, insists that he will not sell for less than £150,000. Although Mari and Ned are keen to secure a reduction in the price, they are desperate to acquire WhistleStop, as they think it has great potential. Mari and Ned's lawyer, Sholto, in breach of contract, negligently misses certain facts about the company while carrying out due diligence, including a minor fraud carried out by an employee. Soon afterwards, WhistleStop Ltd starts losing business to a new competition, Sparkle Ltd. Can Mari and Ned recover from Sholto any loss they might have suffered?


A) Yes, they can recover for loss of a chance to bargain with Tam for a lower price and also for loss caused by competition by Sparkle Ltd.
B) No, they cannot recover for any loss because it is unclear that Sholto's breach of contract has caused them any loss.

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